UT might not reach 2014 goal of raising $3 billion

Sluggish economy affecting variety of initiatives, from scholarships to computer science complex

Austin American Statesman

August 28, 2010

Ralph K.M. Haurwitz

It's not exactly the most auspicious economy in which to be raising $150 million for 300 full-ride scholarships to the University of Texas, but Jim Boon is undeterred.

"If we end up with 60 of these scholarships or 300, it's more than we had before," said Boon, executive director of the Ex-Students' Association, also known as the Texas Exes.

The Exes' initiative is one element of a campuswide fundraising drive, known as the Campaign for Texas, that seeks to raise $3 billion for construction projects, research, faculty pay, graduate student stipends, undergraduate scholarships and athletics by Aug. 31, 2014. And, like the Exes' portion, the overall effort hasn't advanced as far as officials might have hoped.

A total of $1.2 billion has been donated so far. And at the current pace, the university will fall short of its goal. The figure includes cash, securities, pledges and bequests.

"We're aware of the 2014 date, and if we have to extend it we will," said David Onion, associate vice president for development. "The goal of the campaign is not necessarily to fit into an artificial timeline but to elevate the university."

Fundraising for the current budget year, which concludes at the end of this month, is expected to total about $295 million, Onion said. That's about 3.5 percent more than the $285 million donated in the previous year.

The sluggish economy has led to a reduction in larger gifts, which typically are given in the form of stock for brick-and-mortar projects, Onion said. Some sizable gifts are nevertheless in the works, and officials are pleased with the breadth of participation in the campaign.

About 90,000, or nearly 23 percent, of UT's 400,000 living alumni have made a donation, said Carolyn Connerat , executive director for development and manager of the campaign. Nearly 84,000 non-alumni have donated.

Still, the university has had to make adjustments in what its president, William Powers Jr., described earlier this year as "a difficult fundraising environment."

In May, for example, the UT System Board of Regents reduced the price tag for a computer science complex and added $38.5 million in bond funding to allow construction to proceed after the campus failed to receive a penny of $60 million in hoped-for gifts on top of previous pledges of $30 million by the Bill & Melinda Gates Foundation and $10 million by the Michael & Susan Dell Foundation.

Although no additional gifts for the complex have been firmed up yet, "we have several significant foundation proposals out there and some corporate proposals as well that look very promising," Onion said.

The Texas Exes group is also making headway. About $16 million was raised by January, when the Exes went public after more than a year of quiet fundraising. Since then, the needle has moved to $29.9 million.

Boon will have more time to drum up donations come January, when he will shed his current title and become executive director of the Texas Exes Scholarship Foundation. Boon, 63, has led the Ex-Students' Association for 16 years and has committed to serving at least three years in the new job.

The 40 Acres Scholars Program is a merit-based program that will cover tuition, fees, books, living expenses, priority housing in honors residence halls and funding for summer activities such as internships, study abroad and public service. The first 10 scholarships will be awarded in fall 2011. The program is modeled after similar ones at the University of Virginia and the University of North Carolina at Chapel Hill.

Some civic, business and higher education leaders question merit-based aid, noting that there is considerable unmet financial need amid the growing numbers of low-income students in Texas.

"I wouldn't make any apologies for us wanting to attract the best students," Boon said during an interview this week at his office in the association's quarters on San Jacinto Boulevard, across the street from Royal-Memorial Stadium.

The Exes already dole out about $2 million a year in financial aid, split about evenly on the basis of need and merit, he said. That program, which involves more than 700 scholarships, will continue.

Promotional materials distributed by the Exes offer another argument for ramping up academic recruiting: "The Longhorns always aim to get the top recruits in sports — it's time to do the same in academics."

rhaurwitz@statesman.com; 445-3604